India’s Advertising investment is set grow 13% in 2018, according to GroupM's ‘This Year, Next Year’ (TYNY).
GroupM estimated that ad spending in 2017 grew at 10%. Meanwhile, the digital adex (advertising expenditure) will continue to grow by 30% in 2018 while video advertising will increase by 54% as a result of internet penetration.
FMCG continues to be the largest contributor to the Indian adex at 27% followed by e-commerce and auto at 8% and retail at 7%.
CVL Srinivas, country manager, WPP India and CEO, Groupm South Asia said: “As consumer sentiment stabilizes and spending increases, we estimate 2018 to be a relatively better year from an ad spend perspective. Growth in digital media will continue to outstrip other media but unlike most markets, India continues to see traditional media formats grow.
"After a couple of sluggish years, rural volumes are expected to pick up this year leading to increased marketing budgets. The structural changes witnessed in the last couple of years could pave the way for a more stable outlook in the coming years. We haven’t yet realized our full potential as an ad market but are headed in the right direction”.
Lakshmi Narasimhan, chief growth officer, GroupM South Asia said: “Looking at the advertising industry worldwide, GroupM estimates the global advertising expenditure to grow by 4.3%, and APAC is anticipated to grow at 5.4%."
“India remains one of the fastest growing ad markets globally, and is among the top five countries that are expected to drive incremental investment in 2018. Our growth percentage is three times that of the global adex and more than double of the APAC growth percentage.”